SKK, BPH Migas will be Disbanded

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  • TEMPO/Aditia Noviansyah

    TEMPO/Aditia Noviansyah

    TEMPO.CO, Jakarta - The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) and the Downstream Regulatory Agency for Oil and Gas (BPH Migas) will be disbanded and replaced by a special oil and gas agency (BUK Migas). The SKK Migas and BPH Migas will be merged to form a new institution regulating upstream and downstream businesses.

    The draft revision to Law No. 22/2001 on Oil and Gas contains 98 articles with additional chapters, such as those on oil and gas upstream businesses, the downstream business, oil and gas reserves and a new chapter on BUK Migas.

    The draft says that SKK Migas will continue to perform its functions and duties until the BUK Migas is formed and BPH Migas will be disbanded once the law is enacted.

    In terms of organization, BUK Migas will be entitled to seek profit from proven reserves and manage the upstream and downstream businesses.

    The House of Representatives’ (DPR) Commission VII deputy speaker Satya W Yudha said that the draft revision to Oil and Gas Law has been submitted to the DPR’s Legislation Body (Baleg). The next process would be deliberations on the draft revision at the Consultative Body (Bamus) before being introduced to the working committee (panja).

    Thereafter, Satya said the DPR will commence deliberations with the Energy Ministry to ask for inputs. However, he did not reveal the target of the completion of the phases.

    Earlier, Energy Minister Ignasius Jonan said that informal talks have been held with house members in the last three months. He said that the government is awaiting formal process with the DPR.

    Both the government and the house, he added, have agreed to conclude the revision to the law. “The parties agree to conclude the revision by the end of the year,” he said.